Standard Life Aberdeen has launched a last ditch attempt to keep Lloyds from backing out of its £109bn asset management contract with the firm.
In a statement today, Standard Life claimed that Lloyds "did not have the right to terminate the contract" which is SLA's single biggest, representing 4.4 per cent of its full-year pro forma revenue.
Lloyds terminated its contract with SLA in February, triggering a "material competition clause", arguing that the asset manager was now one of its rivals for UK business after it merged with Aberdeen last year.
Read more: Standard Life Aberdeen slumps after losing £109bn of Scottish Widows assets
But SLA responded: "SLA has informed Lloyds Banking Group (LBG) that it does not agree that, following the merger of Aberdeen Asset Management and Standard Life, SLA was in material competition in the UK with LBG and that, therefore, SLA does not consider that LBG, Scottish Widows or their respective affiliates has the right to terminate the asset management agreements.
"The parties are engaging with each other within the framework of the dispute resolution process envisaged in the agreements."
In its response, Lloyds said it was "disappointed at" SLA's stance, especially in light of its position as a "major customer."
A spokesperson added:
Standard Life Aberdeen is a clear and material competitor of Scottish Widows and Lloyds Banking Group in the UK and to suggest otherwise is not credible.
As a result, Scottish Widows and Lloyds Banking Group had the right to terminate the contracts with Standard Life Aberdeen and we acted accordingly by serving notice on February 14.
In any event, management of the funds in question would have ended formally under the terms of the contracts in March 2022.
We are confident of our legal position and that our actions are in the best interests of our customers, and we are therefore surprised at the course of action pursued by Standard Life Aberdeen.
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